Novanta
Market Cap
US$4.6b
Last Updated
2021/06/24 22:46 UTC
Data Sources
Company Financials +
Executive Summary
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Adequate balance sheet with proven track record.
Similar Companies
Share Price & News
How has Novanta's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NOVT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NOVT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-3.1%
NOVT
-1.2%
US Electronic
0.5%
US Market
1 Year Return
26.7%
NOVT
56.7%
US Electronic
42.6%
US Market
Return vs Industry: NOVT underperformed the US Electronic industry which returned 56.7% over the past year.
Return vs Market: NOVT underperformed the US Market which returned 42.6% over the past year.
Shareholder returns
| NOVT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.1% | -1.2% | 0.5% |
| 30 Day | -4.0% | -0.3% | 1.9% |
| 90 Day | -1.2% | 4.2% | 7.9% |
| 1 Year | 26.7%26.7% | 59.9%56.7% | 44.9%42.6% |
| 3 Year | 113.4%113.4% | 68.5%61.5% | 64.4%54.1% |
| 5 Year | 762.2%762.2% | 175.4%157.6% | 128.3%102.7% |
Long-Term Price Volatility Vs. Market
How volatile is Novanta's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
If You Had Bought Novanta (NASDAQ:NOVT) Shares Five Years Ago You'd Have Earned 763% Returns3 weeks ago | Simply Wall St
Slowing Rates Of Return At Novanta (NASDAQ:NOVT) Leave Little Room For Excitement1 month ago | Simply Wall St
Novanta Inc.'s (NASDAQ:NOVT) CEO Compensation Looks Acceptable To Us And Here's WhyValuation
Is Novanta undervalued compared to its fair value and its price relative to the market?
104.71x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: NOVT ($128.25) is trading above our estimate of fair value ($56.77)
Significantly Below Fair Value: NOVT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: NOVT is poor value based on its PE Ratio (102.8x) compared to the US Electronic industry average (24.1x).
PE vs Market: NOVT is poor value based on its PE Ratio (102.8x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: NOVT is poor value based on its PEG Ratio (3.1x)
Price to Book Ratio
PB vs Industry: NOVT is overvalued based on its PB Ratio (9.5x) compared to the US Electronic industry average (2.9x).
Future Growth
How is Novanta forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
32.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NOVT's forecast earnings growth (32.7% per year) is above the savings rate (2%).
Earnings vs Market: NOVT's earnings (32.7% per year) are forecast to grow faster than the US market (15.7% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NOVT's revenue (6.8% per year) is forecast to grow slower than the US market (9.5% per year).
High Growth Revenue: NOVT's revenue (6.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if NOVT's Return on Equity is forecast to be high in 3 years time
Past Performance
How has Novanta performed over the past 5 years?
8.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NOVT has high quality earnings.
Growing Profit Margin: NOVT's current net profit margins (7.3%) are higher than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: NOVT's earnings have grown by 8.3% per year over the past 5 years.
Accelerating Growth: NOVT's earnings growth over the past year (8.4%) exceeds its 5-year average (8.3% per year).
Earnings vs Industry: NOVT earnings growth over the past year (8.4%) underperformed the Electronic industry 14.1%.
Return on Equity
High ROE: NOVT's Return on Equity (9.2%) is considered low.
Financial Health
How is Novanta's financial position?
Financial Position Analysis
Short Term Liabilities: NOVT's short term assets ($309.1M) exceed its short term liabilities ($117.4M).
Long Term Liabilities: NOVT's short term assets ($309.1M) exceed its long term liabilities ($258.8M).
Debt to Equity History and Analysis
Debt Level: NOVT's debt to equity ratio (40.2%) is considered high.
Reducing Debt: NOVT's debt to equity ratio has increased from 37% to 40.2% over the past 5 years.
Debt Coverage: NOVT's debt is well covered by operating cash flow (76.1%).
Interest Coverage: NOVT's interest payments on its debt are well covered by EBIT (9.5x coverage).
Balance Sheet
Dividend
What is Novanta current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NOVT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NOVT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if NOVT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NOVT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NOVT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.7yrs
Average management tenure
CEO
Matthijs Glastra (51 yo)
4.75yrs
Tenure
US$4,896,387
Compensation
Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. since September 1, 2016 and serves as its Chairman of the Board since May 13, 2021 and served as its Executive Officer...
CEO Compensation Analysis
Compensation vs Market: Matthijs's total compensation ($USD4.90M) is about average for companies of similar size in the US market ($USD5.31M).
Compensation vs Earnings: Matthijs's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: NOVT's management team is considered experienced (4.7 years average tenure).
Board Members
Experienced Board: NOVT's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Novanta Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Novanta Inc.
- Ticker: NOVT
- Exchange: NasdaqGS
- Founded: 1968
- Industry: Electronic Equipment and Instruments
- Sector: Tech
- Market Cap: US$4.622b
- Shares outstanding: 35.38m
- Website: https://www.novanta.com
Number of Employees
Location
- Novanta Inc.
- 125 Middlesex Turnpike
- Bedford
- Massachusetts
- 1730
- United States
Listings
Biography
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/06/24 22:46 |
| End of Day Share Price | 2021/06/24 00:00 |
| Earnings | 2021/04/02 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.